Erste sees 30% growth potential for shares of Romanian cargo river transport company TTS

Austrian financial group Erste, which operates BCR group in Romania, maintained its "buy" recommendation for the shares of river transporter Transport Trade Services (BVB: TTS) and indicated a price target of RON 14.35, according to the latest analysis report of the group.

The target was updated from RON 13.67, the new value implying a yield of 30% in relation to the current trading price of the share.

The 9-month results of TTS show the impact of the company's remarkably flexible approach to an environment marked by logistic chain disruptions caused by the war in Ukraine and severe drought in the region, the report reads. TTS posted 9M22 financial results showing significant increases in the top and bottom lines, together with a dramatic improvement in profitability.

The company's 9-month revenues increased by 47% YoY and 77% compared to the first nine months of 2020. At the same time, its net profit increased by 138% compared to January-September 2021 and 282% versus the same period in 2020.

EBITDA evolution was similar, as it doubled versus the previous year and jumped by 156% versus 2020.

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